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Invest in serbia_august_2010






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    Invest in serbia_august_2010 Invest in serbia_august_2010 Presentation Transcript

    • PRESENTATION OUTLINE 1. Key Drivers to FDI in Serbia 2. Strong FDI Figures 3. SIEPA Services
    • KEY COUNTRY DATA Area: 88,361 km² Population: 9.5 million Capital: Belgrade (1.7 million) State form: Democratic Republic President: Mr. Boris Tadic Prime Minister: Mr. Mirko Cvetkovic Currency: Serbian Dinar (RSD) GDP: €31.51 billion (2009) GDP pc: €4,304 (2009) Internet domain: .rs
    • KEY DRIVERS TO FDI IN SERBIA Enhanced Investment Stability Booming Market Potential Quality Human Resources Strategic Geographic Location Low Overhead Costs Attractive Investment Incentives Robust Recent Growth
    • ENHANCED INVESTMENT STABILITY The SAA with the EU signed in April 2008; membership application submitted in late 2009; acquis communautaire to be adopted by 2012 Serbia’s application for the WTO accepted; accession expected by the first half of 2011 PwC EM20 Index 2008–Serbia as the 3rd most attractive manufacturing and 7th Shared Services location among emerging markets E&Y European Investment Monitor–nearly 150 new projects in Serbia in 2007, 2008, 2009; Serbia holding the 2nd spot in South East Europe
    • ENHANCED INVESTMENT STABILITY National treatment of foreign companies Free transfer of financial and other assets, including profits and dividends Bilateral Investment Treaties with more than 30 countries Investment projects insured against non-commercial risks by all major national agencies
    • ENHANCED INVESTMENT STABILITY Business legislation reforms in line with the EU legal framework Key investment-related reforms implemented: - Tax laws, including VAT Law - Business registration: 51 days 5 days - Foreign trade–top reformer in the world for 2006 - The new Planning and Construction Law - The new Law on Competition Protection Key investment-related reforms to be implemented: - ‘The Guillotine of Regulations’–30% fewer regulations
    • ENHANCED INVESTMENT STABILITY The new Law on Planning and Construction: - Freehold ownership of land - Improved license issuing As of May 2009, business registration done in up to 5 days All common company forms available
    • BOOMING MARKET POTENTIAL Duty-free access to a 1 billion people market: Customs-free exports to the EU Generalized System of Preferences for exports of 4,650 products to the United States Free Trade Agreements with the Russian Federation, Kazakhstan, Turkey, EFTA members, and Belarus Free Trade Agreement (CEFTA) in South East Europe
    • QUALITY HUMAN RESOURCES 35,000 university and 2-year college graduates and 75,000 high school graduates yearly Top quality technical education at both high school and university level A wide availability of highly qualified staff Strong command of the English language
    • QUALITY HUMAN RESOURCES Rising unemployment as a result of privatization process layoffs; the unemployment rate particularly high in former, large industrial centers, making a skilled labor force widely available Headhunting agencies available in major cities A 40-hour working week; overtime up to 4 hours/day, 8 hours/week Flexible working forms available: part-time, work at home, etc. Two major labor unions, chiefly active in former state-owned firms
    • STRATEGIC GEOGRAPHIC LOCATION Two European transportation corridors: - Corridor X: Salzburg-Thessalonica highway - Corridor VII: The River Danube A total of €1.7 billion earmarked for further road network development on the Corridor X The three remaining Corridor X sections to be completed in the next three years
    • LOW OVERHEAD COSTS Europe’s second lowest Corporate Income Tax rate The Value Added Tax rate among the most competitive in Central and Eastern Europe
    • LOW OVERHEAD COSTS The average salary–60% of the level in CEE countries Tax burden totaling about 65% of the net salary; reduction possible through tax incentives The 9.4:1 salary ratio by specific industries; 4:1ratio by municipalities
    • ATTRACTIVE INVESTMENT INCENTIVES Tax incentives: A 10-year Corporate Income Tax holiday for investment over €8 million and 100 employees A 5-year Corporate Income Tax holiday for investment in undeveloped regions Corporate Income Tax reduction up to 80% of the fixed assets investment Salary Tax exemptions for employees below 30 and above 45 years of age Social insurance charges exemptions for employees below 30 and above 45 years of age Value Added Tax exemption in Free Zones Customs-free imports of equipment and certain raw materials
    • ROBUST RECENT GROWTH Average exports growth over the 5-year period–33% Strong exports performance driven by the Food, Textile, Metal, Chemical, Machinery, and Wood industries Nearly 55% of foreign trade pursued with the European Union
    • ROBUST RECENT GROWTH–THE CRISIS IMPACT The crisis impact cushioned by: a) state-subsidized banking loans, b) active employment measures, c) public investment in infrastructure development External liquidity secured through the €3 billion Arrangement with the IMF and the Agreement with foreign-owned commercial banks in Serbia
    • STRONG FDI FIGURES Total inward FDI between 2004 and 2008–over €11 billion Inward FDI in 2009 reached about €1.8 billion A sharp upward trend in Greenfield projects–130+ such ventures in 2007, 2008, 2009 About 70% of FDI stemming from EU countries
    • SIEPA SERVICES Free-of-charge assistance in all investment project stages; the Agency specialized in Greenfield projects An investment portfolio in excess of €1 billion Fiat, Kronospan, Ball Corporation, Grundfos, Knauf among major clients
    • CONTACT US SERBIA INVESTMENT AND EXPORT PROMOTION AGENCY 3, Vlajkoviceva St. 11000 Belgrade, Serbia Phone: +381 11 33 98 55 0 Fax: +381 11 33 98 81 4 office@siepa.gov.rs www.siepa.gov.rs